Location: Phoenix-Mesa-Chandler, AZ | Metro: Phoenix-Mesa-Chandler, AZ MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,840 |
| 1 Bedroom | $1,980 |
| 2 Bedrooms | $2,300 |
| 3 Bedrooms | $3,030 |
| 4 Bedrooms | $3,370 |
| 5 Bedrooms | $3,909 |
| 6 Bedrooms | $4,378 |
| 7 Bedrooms | $4,728 |
| 8 Bedrooms | $4,964 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,030 | $472,535 | 0.64% | D |
| 4BR | $3,370 | $598,413 | 0.56% | F |
| 5BR | $3,909 | $787,036 | 0.5% | F |
U.S. Census Bureau data (2024)
The ZIP code 85297, with a population of 37,475, has a significant rental market share at 25.2%. This indicates that while not overwhelmingly renter-heavy, there is still substantial demand for rental properties. The presence of Section 8 tenants can be expected given the demographic makeup, though the concentration may not be as high as in areas with a larger percentage of renters.
The median household income in this ZIP is $130,755, which provides context for the affordability of housing. The market rent stands at $2,112 per month, representing approximately 16.1% of the median household income. This suggests that the average renter in this area can afford a higher rent than what is typically subsidized by Section 8 vouchers.
The Fair Market Rent (FMR) for this ZIP code is set at $2,670 for FY 2024, which is notably higher than the current market rent. This difference indicates that the typical market rent is below the threshold for FMR, making it easier for Section 8 tenants to find suitable housing options within their voucher limits. However, landlords should note that the FMR sets an upper limit on the rent that can be charged to Section 8 tenants, meaning they cannot charge more than $2,670 per month for a unit to be eligible for the program.
A landlord in ZIP 85297 should anticipate a tenant profile that includes individuals and families who are likely to benefit from Section 8 vouchers due to the lower market rent compared to the FMR. These tenants will have a household income that is generally less than 50% of the area median income, aligning with the eligibility criteria for Section 8 assistance. While the overall population leans towards homeownership, the rental sector remains robust enough to support a steady flow of voucher-holding tenants seeking affordable living spaces.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.